With the economy projected to grow at a healthy pace in 2010-11, business outlook for the industry has improved, even if marginally, for the last quarter, said a CII survey.
According to the chamber's survey, the Business Confidence Index for January-March 2010-11 stood at 68.7 as compared to 67.3 in the previous quarter.
"The prospect for the coming quarter (January-March 2011) appears to be brighter...," it said.
Besides, about 70% of the respondents expected the country's economy to grow by over 8% in 2010-11.
The government has projected the GDP growth of 8.6% for the current fiscal.
Over 60% of the businessmen in the survey said that they would like to increase their spending on capacity expansion during January-March 2010 as compared to the previous quarter, it added.
During the last quarter of the fiscal, over half of the respondents expect capacity utilisation between 75-100%, it said, adding that 75% expect their sales to increase during the period.
About 59% foresee an increase in production in the next three months despite rising raw material costs and concerns about slackening consumer demand.
"Forty four% of the respondents expect employment to increase from the current level in the fourth quarter of the current fiscal," the survey added.
